Wipro lists Trump as potential threat to business in US Sec filing
Indian IT company Wipro mentioned US President Donald Trump as a potential risk to its business in its annual US Sec filing.
June 09, 2017 / 04:06 PM IST
Azim Premji, chairman of Wipro Ltd., smiles during a news conference in the southern Indian city of Bangalore, October 18, 2006. Wipro Ltd., India's third-largest software services exporter, beat forecasts with a 48 percent jump in quarterly profits on Wednesday, as demand for outsourcing rose, but its shares fell 3 percent after recent gains. REUTERS/Jagadeesh Nv (INDIA)
In its annual filing with the US Securities and Exchange Commission, Indian IT major Wipro has mentioned US President Donald Trump as one of the risk factors, among others, that could hurt their business operations.
When Trump came to power, he increased the tariff rate for US imports (goods imported in the US) and promoted greater restrictions on free trade. The report expressed the company's fear on having a "material adverse affect" due to the "significant developments stemming from the recent US presidential election."
Changes in US social, political, regulatory and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the territories and countries where we currently operate could adversely affect our business.
This is the first time an Indian IT company has openly pointed out a US President as being detrimental to their business.
Wipro has 29 offices in North America, of which 22 are in the US. In the report, Wipro claimed that over 52 percent of its revenues are derived from its American clients.
Wipro also expressed their concern on the political imbalance caused by Brexit in Europe. The company generates over 24 percent of its revenue from the its European clients.
The report said, "an economic slowdown or factors that affect the economic health of the United States, Europe would adversely affect our business."
Despite Wipro claiming that more than 50 percent of their employees will be locals in their US offices, the company is still threatened with the strict visa restrictions and it could have an "adverse effect on (their) businesses, revenues and operating results."
Apart from the US, the company has categorized UK, Singapore and Australia regarding the difficulty of mobilizing personnel and increasing operational costs.